Canadian Council of Chief Executives

Investing in the Canada-China relationship

sreid — Wed, 08 Feb 2012 22:25:55 +0000

Canada-China relations took an important step forward today, with the announcement that the two countries have reached agreement on an investment-protection deal. The Foreign Investment Promotion and Protection agreement (FIPA) will allow Canadian business leaders to invest with greater confidence. The deal will go into effect after reviews and legal ratifications in both countries. CCCE member Pierre Beaudoin, CEO of Bombardier, is in China with the Prime Minister this week. He said his company hasn't faced many investment issues in China but would like to see a FIPA nonetheless. "Any trade agreement that helps clarify how you would resolve a dispute is a good thing," Beaudoin said. "Right now it's not something I look to use but it could help in the future."

Evidence of export diversification

sreid — Thu, 02 Feb 2012 16:43:23 +0000

Canada’s dependence on the United States as a trading partner is declining, TD Economics reports. By 2020 the United States will account for 67 per cent of Canadian exports, down from a peak of 84 per cent in 2002. At the same time, the direct contribution of U.S.-bound exports to Canadian GDP will stabilize at 20 per cent, almost half its share 10 years ago, the bank said. A number of factors are behind this trend, including a strong Canadian dollar, the weakness of the U.S. economy, and growing foreign competition. While our trade relationship with the United States might not be what it once was, Canadian exports to China have more than doubled since 2002 and exports to Europe have increased by 83 per cent.

Canadian CEOs more bullish than their counterparts

sreid — Wed, 25 Jan 2012 15:00:14 +0000

A new Pricewaterhouse Coopers (PwC) poll suggests that Canadian companies are feeling more optimistic than their counterparts elsewhere in the developed world. Compared to business leaders in other countries, Canadian CEOs were less likely to say that their firms have suffered because of the global economic slowdown. “This doesn't mean Canadian CEOs aren't worried - two thirds are concerned about uncertain or volatile economic growth, while half are concerned about the lack of stability in capital markets,” PwC said in a summary of the findings. “Close to 50 per cent believe that the global economy will decline over the next 12 months. But Canadian CEOs may be in a better position to adjust their business strategy and operations to face whatever comes their way because of greater economic stability compared to many of their counterparts around the world.” Reflecting this more confident outlook, more than half of the Canadian executives who took part in the survey said they have increased their employee numbers in the last year, and about the same number expect to continue hiring in the coming year.

When times are tough, the tough start innovating

sreid — Thu, 19 Jan 2012 17:57:17 +0000

Uncertain economic times may be leading some companies to skimp on investing in innovation, but not in Canada, a survey of business executives in 22 countries suggests. Commissioned by GE, the second annual “Global Innovation Barometer” found that 75% of global executives are reassessing the risks of innovation and more than 60% say it has become more difficult to obtain funding for innovation. Canadian executives, however, are more optimistic about the future of innovation in this country. “Canadians share a global conviction that innovation is a key driver of economic transformation,” says Elyse Allan, President and CEO of GE Canada. At the same time, the GE study contains some important lessons for Canada. “We need to increase the speed at which innovative products are coming to market, improve the efficiency of public/private support, and tell a stronger story globally, if we want to improve productivity and drive next-generation innovation,” Allan says.

Exporting great news

sreid — Fri, 13 Jan 2012 19:15:09 +0000

The United States is Canada’s largest and most important trading partner, but the combination of a weak U.S. economy and strong Canadian dollar means that our trading relationship is not what it once was. That’s why the federal government has made it a priority to diversify our exports and to negotiate new economic partnerships with markets in Europe, Latin America and Asia. It will take time, but today’s Statistics Canada report on international trade offered some good news: in November, Canada’s exports to countries other than the United States rose 6.7%.

Occupy a higher rung on the Canadian economic ladder

sreid — Fri, 06 Jan 2012 18:48:56 +0000

One of the criticisms voiced by the so-called “occupy movement” that spread across North America and Europe last fall was that it is becoming harder and harder for disadvantaged members of society to move up the socio-economic ladder. Although recent studies appear to show that economic mobility has declined in the United States, the situation in Canada is dramatically different, the New York Times reported this week. The newspaper cited a study by economist Miles Corak of the University of Ottawa, who found that just 16 percent of Canadian men who were raised in households with the bottom tenth of incomes stayed there as adults, compared with 22 percent of Americans. Similarly, 26 percent of American men raised at the top tenth stayed there, but just 18 percent of Canadians. Corak concluded that Canada’s more robust social safety net, more progressive public policies and more equal labour markets create more opportunities in Canada for citizens to succeed. Said the Times: “In 2006 Professor Corak reviewed more than 50 studies of nine countries. He ranked Canada, Norway, Finland and Denmark as the most mobile, with the United States and Britain roughly tied at the other extreme. Sweden, Germany, and France were scattered across the middle.”

Who is supply management protecting?

sreid — Thu, 05 Jan 2012 20:38:00 +0000

Proponents of Canada’s supply managed system for dairy and poultry products often argue that the system protects small farmers who otherwise would be unable to compete. In reality, supply management actually works against the interests of many small farms, writes Mark Schatzker in The Globe and Mail this week. Schatzker says that small specialty farmers often cannot afford to buy the quotas required to produce dairy products, eggs and chicken. As a result, Canadian consumers see less product diversity on their grocery store shelves. The quota system in Canada now only works for “low-margin, high-volume factory operations” and “puts the price of artisanal products in the domain of the 1 per cent.”

Going back to where it began: Brazil

sreid — Thu, 05 Jan 2012 16:23:19 +0000

International Trade Minister Ed Fast today named six Canadian CEOs to the new Brazil-Canada CEO Forum, which will be looking for ways to strengthen commercial ties between the two countries.

Brazil is the second-largest economy in this hemisphere and, like Canada, has fared relatively well during these uncertain economic times. Given that, there should be plenty of opportunities for companies in both countries to do business with one another.

But some Canadian companies don’t need to be told that - they already know. Toronto-based Brookfield Asset Management, for example, can trace its roots in Brazil back more than a century.

It all started in 1899 when a group of Canadian businessmen helped launch a Brazilian power company. By the 1950s the Brazilian Traction, Light and Power Co., later renamed Brascan, was majority Canadian-owned. Over the years, the utility businesses were spun off and Brascan, based in Toronto, shifted its focus toward real estate and financial ventures. In 2005 the company changed its name to Brookfield Asset Management.

Brookfield’s interest in Brazil remains strong, as illustrated by its recent launch of a $330 million fund that will invest in Brazilian farmland. “We are very excited about the growth prospects in Brazil,” says Luiz Lopes, head of Brookfield’s operations in that country. “It is a compelling time to be investing in the rapid economic growth of the country.”

Fittingly, Brookfield CEO Bruce Flatt is among the business leaders who will participate in the Brazil-Canada CEO Forum. With Brookfield’s long history in Brazil, the company will surely have a lot of advice to offer.

Be a scrooge on energy now for benefits later

sreid — Tue, 20 Dec 2011 22:00:09 +0000

Thousands of people will be rushing to stores this week to make last-minute purchases to put under the tree. But when you make your list, check it twice - how many small appliances and electronic devices are you giving as gifts this year?

According to Natural Resources Canada, the number of small appliances in the average Canadian household -- including televisions, computers, radios and mobile phones -- increased 55% between 1990 and 2008, the most recent year for which figures are available. The energy consumed by all those gadgets rose almost 150%.

So while conservation-minded consumers are making the switch to energy-efficient fridges and light bulbs, our total household energy consumption continues to rise. Why? The number of things we own that need to be plugged in keeps increasing.

Nationwide, residential energy use increased 14% from 1990 to 2008. Along with more appliances, Canadians are making more use of air conditioning. On top of that, the number of houses in Canada continues to grow and average amount of living space per person has increased.

In a report released today, the Canadian Council of Chief Executives says it is time for all of us to become much more serious about energy conservation. “Better conservation practices will help to insulate Canadians from volatile energy prices, reduce costs for public institutions such as schools and hospitals, and improve the international competitiveness of Canadian companies,” the report says.

Kids and science: adding up the advantages

sreid — Wed, 23 Nov 2011 17:25:45 +0000

A number of studies and reports over the past few years have concluded that governments and educators should do more to encourage young Canadians to pursue careers in math and science (see, for example, this and this).

A survey released today shows that parents get it, too. The survey found that 62% of parents believe that jobs in Canada will require more training in science over the next 15 years. In addition, 94% of parents say science is useful for everyday life outside of work.

“There are a huge number of jobs that require science knowledge, whether it’s simply understanding the basics or having a more deep-rooted foundation,” says Bonnie Schmidt, President and Founder of Let’s Talk Science, which commissioned the survey in partnership with Amgen Canada, a biomedical company with operations in Mississauga, Ont., and Burnaby, B.C. “We need to engage youth in science at a young age, foster that curiosity throughout the school years, encourage them to keep doors open when making decisions about their education, and educate them about the many careers available to them when they do choose to pursue science.”

Let’s Talk Science is a national charitable organization that creates programs to promote children’s interests in science and engineering.

For more on the survey, go here.